Glencore has announced today a 500,000 tonne reduction of contained zinc metal mine production across its operations, which will see more than 500 jobs cuts from its Australian mines.
The Lady Loretta mine, located south of Mt Isa, will have operations suspended indefinitely, resulting in a loss of 242 jobs.
Production will be reduced at George Fisher mine, near Mt Isa, which will see another 224 jobs slashed.
The company, which also suspended operations in a Peru mine and reduced production at several Kazakhstan operations, said the main reason for the reduction is to preserve the value of Glencore’s reserves in the ground at a time of low zinc and lead prices, which do not correctly value the scarce nature of our resources.
“These changes, which represent around one-third of Glencore’s annual zinc production, will reduce fourth quarter 2015 mine production by approximately 100,000 tonnes of contained zinc metal,” a statement from the company said.
“Glencore remains positive about the medium and long term outlook for zinc, lead and silver prices. This decision will ensure that our zinc operations are sustainable well into the future, providing jobs in the communities where we operate and returns to shareholders.
“These changes, although temporary, will unfortunately affect employees at our operations.
“This decision has not been taken lightly.”
Glencore said they will engage will all employees and put in place support services to assist people who may be affected as a result of these changes.